Changes in Banking Secrecy in Ukraine in 2024: What Clients Can Expect

Starting from March 20, 2024, updated Rules for the Storage, Protection, Use, and Disclosure of Banking Secrecy, approved by the NBU Board Resolution No. 33 dated March 18, 2024, came into force in Ukraine. These changes slightly expanded the list of cases in which banks may disclose information about their clients, which raised some concerns among the population.

What Has Actually Changed

The list of entities to which banks may provide information constituting banking secrecy has been supplemented. This list now includes:

• The Deposit Guarantee Fund for Individuals (in the performance of its duties);

• The State Financial Monitoring Service;

• The National Agency for Prevention of Corruption;

• Courts and law enforcement agencies within the framework of criminal proceedings.

The list of information that constitutes banking secrecy and may be disclosed to the National Bank of Ukraine has been specified. This includes:

• Information about clients' accounts and deposits;

• Information on the execution of payment transactions;

• Data on clients' financial status.

• Clearer requirements have been established for banks regarding the storage and protection of information constituting banking secrecy.

It is important to note that the procedure for disclosure and changes in banking secrecy regarding clients' accounts has not undergone significant changes. Banks are not obliged to disclose information about their clients at the first request of any authority. Disclosure is possible only in clearly defined legal cases, for example, based on a court decision or within the framework of a criminal investigation.

Client Expectations

It is expected that as a result of the adopted changes:

1. The level of transparency in the banking system will increase. This may lead to better control over financial flows,  bank loans  and prevention of crimes related to money laundering.

2. The risk of fraud will decrease. Banks will be able to better check their clients and counter attempts to use their accounts for illegal purposes.

What is recommended for clients:

1. Familiarize themselves with the updated Rules for the Storage, Protection, Use, and Disclosure of Banking Secrecy.

2. Contact their bank with any questions regarding how these changes may affect them.

3. If necessary, take measures to further protect their banking data.

It is important to emphasize that banking secrecy in Ukraine is still preserved. Banks are obligated to take all necessary measures to protect information about their clients.